Gold Surge into June 9th?
06/03/17 Weekly Re-Lay:
“Gold & Silver remain strong after setting another higher low on May 8–12th, during the latest phase of a 20-week high-low-(low) Cycle Progression in Silver (related to the 19-week cycle in XAU). That low should hold for several weeks… if not longer.
Gold remains in the strongest technical position, having remained in an intra-year uptrend and weekly 21 MAC uptrend. Combined with other bullish factors, Gold has been projected to see a rally to new 2017 highs.
On a near-term basis, Gold & Silver were expected to rally into June 2nd. That has taken place. Friday’s outside-day/2 Close Reversal higher signaled an extension to this advance and the likelihood for higher levels in the coming week. It also completed an Intra-month V Reversal higher, projecting upside follow-through.
That is still in sync with their weekly LHR indicator – that projects an intermediate peak no later than June 9th. With recent lows (after early-month declines) on March 10th & May 9th, it would not be surprising to see a contrasting high on ~June 9th – after an early-month advance. That would perpetuate a ~30-degree sequence of intra-month extremes.
There is another aspect to those intra-month comparisons that is worth noting. It would not be cited if not for the corroborating projections already aligning in the same vicinity. And this one has to do with price objectives.
Before delving into this, the primary reason for focusing on the corresponding price range – around [reserved for subscribers] – is the synergy of the three most recent weekly LHRs (intra-week extreme upside targets). These come into play at [reserved for subscribers].
Given this synergy and the recent action in Gold, there is an increasing likelihood for a quick, accelerated spike high). Reinforcing that is the primary wave objective for this rally… [reserved for subscribers]…
At the very least, Gold’s monthly resistance & monthly LHR are arguing for a June rally to [reserved for subscribers]…
Silver has some related resistance/objectives at [reserved for subscribers]… The XAU has declined since rebounding into mid-May & attacking monthly resistance (87.79–88.61/XAU)…
If Gold does spike above [reserved for subscribers], that could provide a few days of support for the XAU, but once Gold has signaled a top – that could have the effect of yanking the rug out from under the XAU Index.
That would then allow the XAU to see a new drop into [reserved for subscribers], the next intermediate cycle low (see June 2017 INSIIDE Track for additional analysis) as Gold & Silver pull back from their latest peaks.
That is the textbook pattern of stair-step moves that can create the kind of divergence that continues to unfold in this arena. Each time there is a rally, the metals lead that rally and see greater advances than the XAU. Then, the XAU leads the declines and sees sharper drops as Gold & Silver correct from their latest highs.
Both might rally at approximately the same time.
And both might decline at approximately the same time.
BUT, the magnitudes of the comparative moves are significantly different, resulting in a sharply different net result between the metals vs. the miners…
From a larger-degree wave & price perspective, the XAU could still ultimately see a drop to [reserved for subscribers]…
1–4 week traders could be long August Comex Gold futures at [reserved for subscribers].”
Gold confirms extended advance with powerful signal on June 2nd. Buy signal remains intact and is projecting an accelerated surge to key upside objectives. Silver has related targets for coming week(s). Gold Stocks (XAU) – after fulfilling May 22–26th cycle low – poised to rally with Gold & Silver in coming days. If Gold & Silver reach & hold upside targets, XAU could see new sell-off AFTER that is accomplished.
See Weekly Re-Lay & INSIIDE Track for more specific expectations, targets & trading strategies.